PA UC weekly claim shows $20 difference between benefit amount and payment amount - why?

Yes, that $20 difference is probably tax withholding. When you first filed your claim, there was a question asking if you wanted federal taxes withheld from your benefits. The standard withholding is 10%, but some people only see a flat amount taken out. You can verify by logging into your account and checking your withholding preferences in your profile settings. If you don't want taxes withheld, you can change it, but remember you'll owe the taxes when you file next year!

The state ALWAYS takes out taxes if u checked that box!!!! I made that mistake my first time on UC and was wondering where my $$$ went too. It's better to have them take it out now though cuz TRUST ME u dont wanna deal with a big tax bill next april!!!

That's definitely tax withholding. But you should check if it's correct - when I was on UC in 2024, they were taking exactly $20 from a $416 benefit which isn't exactly 10%. I called them to fix it and it took FOREVER to get through. I finally used Claimyr (claimyr.com) to reach a PA UC agent after trying for days on my own. They have this service where they basically wait on hold for you and call when an agent is ready. You can see how it works in their video: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. Saved me so much frustration! The agent confirmed my withholding was set up wrong and fixed it on the spot.

To add some important information: Pennsylvania UC offers three tax withholding options: 1. Federal tax withholding only (which is typically what's happening in your case) 2. No tax withholding at all 3. Both federal and state tax withholding The federal withholding is supposedly 10%, but the system often takes a flat amount that approximates 10% rather than calculating the exact percentage. That's why you're seeing $20 instead of $49.30 (which would be exactly 10% of $493). You can change your withholding preference by logging into your dashboard, going to "Manage My Benefits" and then "Update Tax Withholding." Any changes will apply to future payments only.

this happened to me last month!! i freaked out thinking they were taking money for an overpayment or something lol. but yeah its just taxes. btw dont forget ur gonna get a 1099-G form next january for all ur uc payments for taxes

sumtimes they also take $ out if u owe child support FYI

Has anyone else noticed that the UC system is TERRIBLE at explaining these things?? They should put this info right on the payment screen! I had to learn about the tax withholding from my brother who went through this last year. The whole system is designed to confuse people I swear!!

i had this exact problem too. i actually ended up calling and the lady on the phone explained that most people don't realize they selected tax withholding when they first applied. she said its usually better to keep it that way though unless you're setting aside money yourself for taxes. unemployment benefits are 100% taxable income.

Just want to add that you can also see a breakdown of your withholdings if you go to "View Payment History" in your UC dashboard. It should show the gross benefit amount, any deductions (like the $20 tax withholding), and your net payment. This helped me understand exactly what was being taken out when I had the same confusion a few months ago. The interface isn't super intuitive but the info is there if you dig around a bit!

I went through the same thing when I first started collecting! That $20 is definitely federal tax withholding. What helped me was going to the "Payment History" section like Jamal mentioned - you can see exactly how they break down your payment. The gross amount should show your full $493 benefit, then it'll show the $20 federal tax deduction, leaving you with the $473 net payment. I'd recommend keeping the withholding active since unemployment is fully taxable and you don't want to get hit with a big bill next April. The system could definitely explain this better upfront though!

Just wanted to chime in as someone who's been through this exact situation! That $20 is definitely federal tax withholding - I had the same panic when I first noticed it. The good news is you can easily verify this by logging into your UC dashboard and checking under "Payment History" where it'll show the breakdown. One thing I learned the hard way is that even though it says "10% federal withholding," PA often rounds to convenient dollar amounts rather than calculating exact percentages. So your $20 on a $493 benefit works out to about 4%, but they probably set it as a flat rate when you first applied. If you want to change it, you can do so in your account settings, but honestly I'd recommend keeping it since unemployment is fully taxable and you'll owe it anyway come tax season!

I had this exact same confusion when I first started collecting! That $20 is definitely federal tax withholding. When you initially filed your claim, there was a question about whether you wanted taxes withheld - sounds like you selected yes. The system takes out what's supposed to be 10% federal tax, but PA often uses flat dollar amounts instead of exact percentages, which is why you're seeing $20 instead of $49.30 (10% of $493). You can check this by going to your UC dashboard and looking at "Payment History" - it should show your gross benefit of $493, the -$20 federal tax deduction, and your net payment of $473. If you want to change your withholding preference, you can do it in your account settings under tax withholding options. Personally, I'd recommend keeping it as-is since unemployment benefits are 100% taxable income and you'll owe the taxes anyway when you file next year. Better to have it taken out now than deal with a big tax bill later!

I'm dealing with this same issue right now! Just started collecting UC a few weeks ago and noticed the same $20 difference between my benefit amount and what actually hits my card. Reading through all these comments has been super helpful - I had no idea that was tax withholding when I first applied. I vaguely remember that question during the application process but honestly I was so stressed about everything I just clicked through quickly. Really wish they made this clearer somewhere in the system instead of having to figure it out through trial and error. Definitely going to check my payment history now to see the breakdown. Thanks everyone for explaining this so clearly!

I just went through this exact same thing last month! That $20 is definitely federal tax withholding - when you first applied for UC, there was a question asking if you wanted federal taxes taken out of your benefits. Most people select "yes" without really thinking about it (I know I did!). The confusing part is that PA doesn't take out exactly 10% like they say - they use rounded dollar amounts instead. So instead of taking $49.30 (which would be 10% of your $493), they take a flat $20. You can see the full breakdown if you log into your UC dashboard and go to "Payment History" - it'll show your gross benefit, the tax deduction, and your net payment. Honestly, I'd recommend keeping the withholding active. Unemployment benefits are fully taxable, so you'll owe those taxes anyway when you file next year. Better to have them taken out now than get hit with a big tax bill in April!

I went through the exact same confusion when I first started collecting! That $20 difference is definitely federal tax withholding. When you applied for UC, there was a question about whether you wanted federal taxes withheld from your benefits - it sounds like you selected yes (which is actually a smart choice). The reason it's $20 instead of exactly 10% of your $493 benefit is that Pennsylvania's system often uses flat dollar amounts rather than calculating precise percentages. So instead of deducting $49.30 (which would be exactly 10%), they round it to a more convenient amount. You can confirm this by logging into your UC dashboard and checking your "Payment History" section - it should show your gross benefit amount of $493, then list the -$20 federal tax withholding, resulting in your net payment of $473. I'd honestly recommend keeping the withholding in place since unemployment benefits are 100% taxable income. It's much better to have the taxes taken out now than to get hit with a surprise tax bill when you file next year!

I can totally relate to this confusion! When I first started collecting UC benefits about 6 months ago, I had the exact same panic when I noticed money was "missing" from my payments. That $20 is definitely federal tax withholding - when you initially filed your claim, there was a section asking if you wanted federal taxes withheld from your benefits, and it sounds like you selected yes (which is honestly the smart choice!). What confused me at first is that Pennsylvania doesn't calculate exactly 10% like they claim - they use flat dollar amounts instead. So rather than taking $49.30 (10% of $493), they take a rounded amount like $20. You can verify this by going to your UC dashboard and clicking on "Payment History" - it'll show your gross benefit of $493, the -$20 federal tax deduction, and your net payment of $473. I'd definitely recommend keeping the withholding active since unemployment benefits are fully taxable income. Trust me, it's much better to have it taken out now than deal with a massive tax bill next April! The UC system really should explain this more clearly upfront instead of leaving people to figure it out on their own.

I'm so glad I found this thread! I just started collecting UC benefits last week and noticed the exact same thing - my determination letter says $485 but only $465 is going to my ReliaCard. I was starting to worry that I'd made some mistake during the application process or that there was an error in the system. Reading through everyone's explanations about the federal tax withholding makes so much sense now. I vaguely remember that question when I first applied but I was so overwhelmed with everything I wasn't really paying attention to what I was selecting. Definitely going to check my Payment History to see the breakdown like everyone mentioned. Thanks to everyone for sharing their experiences - it's such a relief to know this is totally normal and not some kind of problem with my claim!

I'm dealing with this exact same situation right now! Just got my first UC payment last week and was completely confused when I saw $20 less than what my determination letter said I'd get. I was honestly starting to panic thinking there was some kind of error or that I'd answered something wrong on my weekly certification. After reading through all these comments, I finally understand it's the federal tax withholding I must have selected during my initial application. The whole process was so overwhelming when I first applied that I barely remember what boxes I checked! Going to log into my dashboard right now to check that Payment History section everyone's mentioning. Really wish PA made this clearer somewhere in the system - would have saved me a lot of stress this week wondering where my money went!

I just went through this exact same confusion a couple weeks ago when I started collecting! That $20 difference had me really worried that something was wrong with my claim. Like everyone else has explained, it's definitely the federal tax withholding you selected when you first applied. What really helped me understand it was going to the Payment History section in my UC dashboard - you can see exactly how they break down your payment there. It shows your gross benefit amount, then the tax deduction, then your net payment. I was doing the math trying to figure out why it wasn't exactly 10% of my benefit amount, but apparently PA rounds to convenient dollar amounts instead of calculating precise percentages. I decided to keep the withholding active since unemployment benefits are fully taxable and I'd rather pay as I go than get hit with a big tax bill next year. The UC system really could do a better job explaining this upfront though - seems like almost everyone goes through this same moment of panic when they first notice the difference!

I had this exact same confusion when I first started collecting UC about 8 months ago! That $20 difference is definitely federal tax withholding - when you applied, there was a question asking if you wanted federal taxes withheld from your benefits and you must have selected yes (which is actually the smart choice!). PA's system uses flat dollar amounts instead of calculating exact percentages, so instead of taking exactly 10% ($49.30), they round it to something like $20. You can see the full breakdown by logging into your UC dashboard and going to "Payment History" - it'll show your $493 gross benefit, the -$20 federal tax deduction, and your $473 net payment. I'd recommend keeping the withholding since unemployment benefits are 100% taxable income. Better to have it taken out now than deal with a huge tax bill next April! The system really should explain this more clearly upfront instead of leaving everyone to figure it out through panic and confusion.